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The Russell Investment Approach

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Multi Style

What Are Styles?

Professional investment managers use unique methodologies to decide which stocks to buy. These methods can generally be categorized into one of several broad investment styles, such as growth, value, market-oriented, and small capitalization.

  • Growth
    These managers are primarily interested in a company's earnings. They focus on investing in companies they expect to exhibit profitability and shareholder earnings greater than their industry peers.
  • Value
    Value managers are most interested in getting a company's stock for a good price. They may purchase stocks of companies that are currently out of favor with the market, believing the stock is a good value for the price.
  • Market-Oriented
    These managers seek to develop well-diversified portfolios with average growth and valuation characteristics similar to the broad market. Many managers seek to add value by emphasizing economic sectors they believe are undervalued.
  • Small Capitalization
    These managers focus on smaller companies. Some of these companies are young and growing rapidly, while others are simply smaller businesses with long histories. These companies are characterized by low dividend yields and above-average volatility.

    Styles continually move in and out of favor with the market.

The Importance of Style 

Russell uses comprehensive research, complex algorithms, and sophisticated technology to regularly evaluate fund managers for style. Confirming style is important because it ensures that your investment remains appropriately diversified over time.

When you invest in one Russell fund, your investment is diversified within each asset class into several complementary styles.

No matter which style is in favor at a time, Russell's blending of investment manager styles and complex style evaluation can help to manage risk and work toward more consistent returns, making you feel more comfortable adopting, and sticking to, a long-term investment strategy.

You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.